What is the difference between just compensation and market value?

Just compensation and market value are two concepts that are important when discussing eminent domain law in Washington. Eminent domain law is the legal power of the state or federal government to acquire private property for public use. Just compensation is the legal term for the value of just compensation a landowner should receive when their private property is taken by the state or federal government. Just compensation is determined by measuring how much the landowner lost as a result of the government’s taking of their property. This amount should be reasonably equivalent to the market value of the taken property. The landowner should be awarded just compensation point-for-point for the property taken by the government. Market value refers to the property’s fair market value based on the current price of property in the same area. This is the amount a willing, rational buyer would pay for the property. Market value is a separate value that is much higher than just compensation could ever provide and is often used to negotiate property acquisitions or eminent domain proceedings. The government is required to pay the market value, but it is in the best interest of the landowner to try to negotiate a higher amount. In conclusion, just compensation is the amount of compensation the landowner should receive for the property taken by the government, and market value measures the fair market estimate of the property taken. While the government is required to pay the market value, the landowner can negotiate a higher amount for the property taken.

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What is the difference between just compensation and market value?

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